Spot gold may retreat to $1,773
- It is doubtful that the rise could extend further into $1,828-$1,862 range. Quite likely, the rise is over
SINGAPORE: Spot gold may retreat to $1,773 per ounce, as it failed to break a resistance at $1,800 and a falling trendline.
The failure could have triggered a drop towards $1,773. But more than that, it may have done a big damage to the rise from $1,684.37.
It is doubtful that the rise could extend further into $1,828-$1,862 range. Quite likely, the rise is over. The downtrend form $1,916.40 may have resumed.
A rise above the Tuesday high of $1,809.46 could be extended into the range of $1,828-$1,862. A closer examination on the wave structure of the rise on the hourly chart suggests the completion of a five-wave cycle.
The bearish divergence on RSI confirms the completion. Gold could be falling towards the bottom of the wave (4) around $1,775, close to $1,773 on the daily chart. Only a break above $1,811 could signal the extension of the uptrend towards $1,827-$1,837 range.
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